________: a measure of the response of consumption of a good or service to changes in the price of another good or service

An increase in potential GDP ________ aggregate supply and ________

A) decreases; shifts the AS curve rightward B) increases; shifts the AS curve rightward C) decreases; shifts the AS curve leftward D) increases; shifts the AS curve leftward E) has no effect on; does not shift the AS curve

Which of the following is most likely to close a recessionary gap in the economy?

a. A decrease in the expenditure on infrastructure b. An increase in the income tax rate c. An increase in the rate of foreign exchange d. A decrease in money supply e. An increase in the compensation for government employees